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Independent Report on Credit Demand by SME's Published
• Demand remains soft with 40% of SME’s surveyed seeking credit between October 2012 and March 2013• 76% of application approved (74% in full & 2% partial)• 77% of SMEs who were refused credit did not agree with the reason provided• 6% of SMEs surveyed believe the banks are not lendingThe independent survey on the demand for credit by Small and Medium Enterprises in Ireland was published today covering the period October 2012 to March 2013. This survey was conducted by Red C and follows on from similar surveys covering the three previous six month periods. This survey is the most comprehensive survey of SME Credit Demand in Ireland, covering over 1,500 respondents and just under 5,000 direct calls to SME’s. The key conclusions of the survey are set out below.
Welcoming the report, Minister for Finance Michael Noonan said:
The survey findings show that demand for Credit remains relatively soft with 40% of SME’s applying for credit in the last six months. Encouragingly, the survey finds that 74% of applications were approved in full. Any SME’s who require credit should approach the banks with viable business plans and, if refused, they should avail of the services of the Credit Review Office, which is overturning approximately 55% of cases referred to them.The SME sector is a key driver of growth and jobs across the country and it is essential that SME owners and managers have the confidence in the economy to invest in their businesses. It is clear from the Survey results that SME’s decisions to apply for credit are intrinsically linked to the prevailing economic environment in which they are operating. Stability is returning to the economy and we are seeing signs in this survey of stability in SME’s turnover.
Read the full press release
here.
Read the report
here.